Dive Brief:
- BIA/Kelsey released its latest forecast on local video advertising, projecting spending will reach $37.6 billion by 2021, up from $32.6 billion in 2016, with most of the growth coming from digital video and local TV, per a company press release.
- The forecast also recognized that digital growth could be tempered by programmatic for broadcast and MVPD video platforms, which would drive more spending growth toward linear video.
- Successful expansion will be derived from five key elements: data-driven audience targeting, household targeting, data quality and transparency, workflow integration and new local broadcast TV standard ATSC 3.0.
Dive Insight:
While digital video advertising continues to grow, with digital ad spending overall having overtaken linear TV, bringing programmatic to linear video ad spending will likely drive more spending to this marketing channel.
TV industry insiders have been pointing to the convergence of digital and more traditional advertising, particularly bringing the targeting and measurement that has been the hallmark of digital ads to linear TV. Programmatic would include automated ad tech to those new capabilities giving marketers already used to linear video advertising the tools they have become used to with digital campaigns.
However, consumers are getting used to the interactivity of digital video on their phones, so it is unclear if programmatic will be enough of a lure for brands to shift budget back to TV if attention continues to migrate online.
